Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2013

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Components of Stock-Based Compensation Expense

The following tables summarize the components of total stock-based compensation expense included in our consolidated income statements in 2013, 2012 and 2011 (in millions):

	Year Ended December 31, 2013
	Stock Options		Restricted Stock		Total Stock-Based Compensation
Cost of product sales	$	19	$	29	$	48
Cost of services	15		61		76
Research and development	75		282		357
Selling, general and administrative	82		372		454
Stock-based compensation expense before income taxes	191		744		935
Income tax benefit	56		170		226
Total stock-based compensation, net of tax	$	135	$	574	$	709
	Year Ended December 31, 2012
	Stock Options		Restricted Stock		Total Stock-Based Compensation
Cost of product sales	$	22	$	30	$	52
Cost of services	21		53		74
Research and development	88		236		324
Selling, general and administrative	131		339		470
Stock-based compensation expense before income taxes	262		658		920
Income tax benefit	68		162		230
Total stock-based compensation, net of tax	$	194	$	496	$	690
	Year Ended December 31, 2011
	Stock Options		Restricted Stock		Total Stock-Based Compensation
Cost of product sales	$	30	$	31	$	61
Cost of services	25		38		63
Research and development	106		193		299
Selling, general and administrative	165		248		413
Stock-based compensation expense before income taxes	326		510		836
Income tax benefit	73		120		193
Total stock-based compensation, net of tax	$	253	$	390	$	643

Net Change in Amounts Capitalized or Accrued

The table below presents the net change in amounts capitalized or accrued in 2013 and 2012 for the following items (in millions):

	Increased (decreased) during the year ended December 31, 2013			Increased (decreased) during the year ended December 31, 2012
Accrued expenses (accrued warranty expenses)	$	(1	)	$	(2	)
Other assets	2			8

EMC Employee Stock Purchase - 1989 Plan

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Employee Stock Purchase Plan Activity

The following table summarizes the 1989 Plan activity in the years ended December 31, 2013, 2012 and 2011 (table in millions, except per share amounts):

	For the Year Ended
	December 31, 2013		December 31, 2012		December 31, 2011
Cash proceeds	$	82	$	154	$	141
Common shares purchased	4		7		7
Weighted-average price per share	$	20.08	$	21.65	$	20.44

EMC

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Stock Option Activity

The following table summarizes our option activity under all equity plans since January 1, 2011 (shares in millions):

	Number of Shares		Weighted Average Exercise Price (per share)
Outstanding, January 1, 2011	172		$	15.23
Options granted relating to business acquisitions	1		3.24
Granted	2		25.31
Forfeited	(4	)	13.00
Expired	(14	)	40.05
Exercised	(45	)	11.91
Outstanding, December 31, 2011	112		13.69
Options granted relating to business acquisitions	2		1.54
Granted	1		26.80
Forfeited	(2	)	13.75
Expired	(1	)	14.19
Exercised	(35	)	11.65
Outstanding, December 31, 2012	77		14.39
Options granted relating to business acquisitions	1		3.29
Granted	—		—
Forfeited	(1	)	13.36
Expired	—		—
Exercised	(20	)	13.10
Outstanding, December 31, 2013	57		14.56
Exercisable, December 31, 2013	50		14.58
Vested and expected to vest, December 31, 2013	57		$	14.59

Restricted Stock and Restricted Stock Unit Activity

The following table summarizes our restricted stock and restricted stock unit activity since January 1, 2011 (shares in millions):

	Number of Shares		Weighted Average Grant Date Fair Value
Restricted stock and restricted stock units at January 1, 2011	44		$	17.20
Granted	21		25.12
Vested	(15	)	16.44
Forfeited	(4	)	20.56
Outstanding, December 31, 2011	46		21.10
Granted	21		26.57
Vested	(16	)	18.92
Forfeited	(4	)	23.09
Outstanding, December 31, 2012	47		24.39
Granted	20		25.55
Vested	(15	)	22.61
Forfeited	(4	)	24.80
Restricted stock and restricted stock units at December 31, 2013	48		$	25.43

Weighted Average Assumptions Used to Estimate Fair Value of Awards

The fair value of each option granted during the years ended December 31, 2013, 2012 and 2011 was estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions:

	For the Year Ended December 31,
EMC Stock Options	2013	2012			2011
Dividend yield	N/A	None			None
Expected volatility	N/A	34.3		%	33.3		%
Risk-free interest rate	N/A	0.8		%	1.6		%
Expected term (in years)	N/A	5.2			4.9
Weighted-average fair value at grant date	N/A	$	8.56		$	8.00

VMware

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Stock Option Activity

The following table summarizes activity since January 1, 2011 for VMware employees in VMware stock options (shares in millions):

	Number of Shares		Weighted Average Exercise Price (per share)
Outstanding, January 1, 2011	27		$	33.54
Forfeited	(1	)	40.98
Exercised	(10	)	28.64
Outstanding, December 31, 2011	16		35.27
Granted	1		4.67
Forfeited	(1	)	42.07
Exercised	(6	)	30.44
Outstanding, December 31, 2012	10		34.36
Granted	1		71.53
Exercised	(5	)	28.12
Outstanding, December 31, 2013	6		44.12
Exercisable, December 31, 2013	4		36.45
Vested and expected to vest	6		$	42.84

Restricted Stock and Restricted Stock Unit Activity

The following table summarizes restricted stock activity since January 1, 2011 (units in millions):

	Number of Units		Weighted Average Grant Date Fair Value (per unit)
Restricted stock at January 1, 2011	10		$	54.17
Granted	5		91.51
Vested	(4	)	48.47
Forfeited	(1	)	64.70
Outstanding, December 31, 2011	10		72.74
Granted	8		101.73
Vested	(4	)	69.01
Forfeited	(2	)	81.53
Outstanding, December 31, 2012	12		91.93
Granted	7		76.20
Vested	(4	)	83.21
Forfeited	(2	)	90.55
Outstanding, December 31, 2013	13		$	85.85

Stock Repurchase Agreements

The following table summarizes stock repurchase authorizations in the years ended December 31, 2013, 2012 and 2011 (amounts in table in millions):

Month Authorized	Amount Authorized	Expiration Date
August 2013	700	End of 2015
November 2012	250	End of 2014
February 2012	600	End of 2013
February 2011	550	End of 2012
March 2010	400	End of 2011

Stock Repurchase Activity

The following table summarizes stock repurchase activity in the years ended December 31, 2013, 2012 and 2011 (table in millions, except per share amounts):

	For the Year Ended December 31,
	2013		2012		2011
Aggregate purchase price	$	508	$	468	$	526
Class A common shares repurchased	7		5		6
Weighted-average price per share	$	76.58	$	91.10	$	88.37

Weighted Average Assumptions Used to Estimate Fair Value of Awards

The fair value of each option to acquire VMware Class A common stock granted during the years ended December 31, 2013, 2012 and 2011 was estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions:

	For the Year Ended December 31,
VMware Stock Options	2013			2012			2011
Dividend yield	None			None			None
Expected volatility	38.5		%	35.8		%	37.7		%
Risk-free interest rate	0.9		%	0.3		%	1.0		%
Expected term (in years)	3.6			2.7			3.0
Weighted-average fair value at grant date	$	29.47		$	80.45		$	88.40
	For the Year Ended December 31,
VMware Employee Stock Purchase Plan	2013			2012			2011
Dividend yield	None			None			None
Expected volatility	32.9		%	37.8		%	34.9		%
Risk-free interest rate	0.1		%	0.1		%	0.2		%
Expected term (in years)	0.5			0.5			0.5
Weighted-average fair value at grant date	$	20.45		$	23.36		$	23.69

VMware | VMware Employee Stock Purchase - 2007 Plan

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Employee Stock Purchase Plan Activity

The following table summarizes ESPP activity in the years ended December 31, 2013, 2012 and 2011 (table in millions, except per share amounts):

	For the Year Ended
	December 31, 2013		December 31, 2012		December 31, 2011
Cash proceeds	$	76	$	69	$	57
Class A common shares purchased	1		1		1
Weighted-average price per share	$	65.97	$	77.34	$	69.81